Manufacturing declines by 1.1%
THE decrease in the production of petroleum products and chemicals caused a slight reduction in the manufacturing output in July 2017.
In the Monthly Integrated Survey of Selected Industries (MISSI) of the Philippine Statistics Authority, a Neda-attached agency, the manufacturing sector’s Volume of Production Index (Vopi) declined by 1.1 percent (%) in July 2017, from a growth of 6.8% in the previous month and 12.1% last year.
The Value of Production Index (Vapi) likewise contracted by 2% but still remained in positive territory with a three-month average growth rate of 3.3%.
The decreases were due to the lower production of petroleum products and chemicals, posting a decline of 1.1% and 52.6%, respectively. Such were caused by a large decline in the production of fuel products and the lingering effects of maintenance activities undertaken in the first half of 2017.
Nonetheless, Socioeconomic Planning Secretary Ernesto M. Pernia remained optimistic of the growth of manufacturing in the fourth quarter.
“We expect higher manufacturing outputs in the coming months as we expect an increase in consumer demand during the holiday, translating to higher production in volume and sales,” the Neda Chief said.
He added that strong macroeconomic fundamentals, acceleration of infrastructure development projects, and increased investment will further provide additional support to manufacturing growth.
Pernia also recommended to expand existing manufacturing enterprises and attract foreign and local investments in the countryside to sustain manufacturing growth.
“We need to expand our production capacity to take advantage of strong domestic demand and benefits from free trade agreements. In line with this, efforts must be given to accelerate the implementation of infrastructure projects and enhance the quality and cost-effectiveness of manufacturing-related services to ensure sustained growth,” he said.